It seems that Intel is abandoning its business for the production of 5G modems for smartphones, however, apparently, not everyone considers this direction to be dead. According to reports published in the Wall Street Journal, Apple is in talks to buy this business from Intel for about $ 1 billion. The processor manufacturer made this decision after the lawsuit between Apple and Qualcomm ended, as a result of which Qualcomm will again produce modem chips for Apple's smartphones. For Intel, the loss of such an extensive market share (Apple is by far their largest customer) means that the 5G network business is becoming unprofitable.
Then Intel began to look for a buyer who would need this production. Upon learning this, Apple expressed a desire to acquire part of Intel's business. This Apple deal will be an interesting turn in collaboration with Qualcomm, as it will allow the company to independently develop this technology in the future, without resorting to the services of third-party companies. This is likely to jeopardize Qualcomm's similar business in the near future, although their market is also not limited to only Apple.
Apple continues to develop and strengthen its own ecosystem
The deal has yet to be approved by the relevant regulatory authorities, it has not yet been completed, despite the fact that both companies have already signed the agreement. But given that Apple is not currently a player in this market, the deal is likely to be approved.
While most technology companies are trying to find ways to interact with each other, Apple continues to develop technology within its own ecosystem. This concept is very beneficial for the company, even if it isolates it to some extent from the rest of the market. And really, is it worth worrying about if you are one of the largest companies in the world and you have a loyal customer base that continues to buy your brand?